Need new Gears

3" body lift is generally not good, it puts too much leverage on the body bolts and, in an accident or even a sudden stop like sliding into a ditch, the body can easily shift on the frame. I'd recommend 1" BL tops.

As for suspension lift, a 4" lift requires about the same install work as a 2.5", so consider your options. The 4" will require the use of transfer case drop brackets but they're simple.

The YJ fenders are relatively tight, and even 33" tires can rub with a 4" lift. Consider installing TJ ('97+) fender flares for more tire clearance. They require cutting a little sheet metal but are a relatively easy install. Plenty of online writeups if you're google savvy.

Is this jeep a 5spd? If so, it likely has 3.07 axle gears, which explains such a loss of power with the 33" tires. I'd recommend regearing the axles to at least 4.10 to regain driveability. The easiest and often cheapest way to install 4.10 gears is to swap in a pair of used axles from a 2.5L 5spd YJ from '87-'95. You will still have the relatively weak rear Dana35 rear axle, so an 8.8 rear axle from a '95+ Ford Explorer is a very good upgrade. It can be found with 4.10 gears and has disc brakes.
 
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